Turkey to implement quota system to regulate surging gold imports
Turkey will impose a "quota application" on unprocessed gold imports following a staggering 180% surge in gold import volumes, Turkey’s state run Anadolu news agency said on Monday, citing sources from the Turkish Finance Ministry. The decision aims to address the potential negative implications of the surge on Turkey's current account deficit and provide support to the country's foreign exchange reserves.
Thea sources revealed that the ministry has been actively monitoring the negative impacts of the recent upsurge in raw gold imports on foreign trade and the balance of payments. In response, the ministry engaged in discussions with relevant institutions and sector representatives, aiming to devise measures to address these effects. The deliberations were carried out with a focus on long-term solutions, and careful consideration was given to safeguarding the interests of exporters within the framework of the implemented measures, Anadolu said.
The assigned quotas take into account the annual import volumes of unprocessed gold for previous years, as carried out by intermediary institutions. Monthly quota amounts have been set based on these considerations, factoring in the import and exchange activities of precious metals intermediary institutions.
This approach aims to stimulate gold production, trade, and export while concurrently fostering positive developments in the long-term current account balance.
According to data from the Ministry of Commerce, Turkey's gold imports reached $217.052 billion during the January-July period, marking a 5.1% increase compared to the same period last year. Notably, unprocessed gold imports exhibited a remarkable 180% rise, amounting to $19.4 billion during the same period.